Assume the Market Depicted in the Graph Is in Equilibrium

question 72

Multiple Choice

Assume the market depicted in the graph is in equilibrium. If the market price is set to $12, which of the following statements is true?

• A) For those still interacting in the market, some surplus will be transferred from buyer to seller.
• B) For those still interacting in the market, some surplus will be transferred from seller to buyer.
• C) Producers will gain the surplus of those buyers who drop out of the market.
• D) Consumers will gain the surplus of those sellers who drop out of the market.

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